Don Coxe, Friday’s 11/15/10 Institutional Investor Call – Notes:

· Sent out silver vs. gold chart with the slogan, HI HO SILVER AWAY

· Silver has pulled away from gold and moved up dramatically shortly after announcement of QE2. Silver is referred to as the poor man’s gold and has much more retail participant in it than gold. This suggests that all sorts of people in all different areas of the world decided they needed protection. Paper money has gone from being “suspect” to being “convicted.”

· Short term dramatic move of one PM commodity against another could be called a “bubble.”

· SLW – no surprise as to how well it has performed. If silver is going to be a better sentiment marker as to where “the man on the street is” what this will tell you is that there is a lot of fear out there. However, the dollar YTD is flat despite all the chagrin about its fall.

· Situation in Ireland does look truly bleak. For the Europeans the more they see their currency as suspect because one EURO country is on the hook for another Euro country. This gives underlying strength to the PMs. Don believes this change in sentiment to the PM’s as a safe haven will be with us for some time. This is especially the case when Ireland is now beginning to look similar to Iceland from a financial disaster standpoint.

· He rejects the notion that commodities are collectively in a bubble. Commodities are starting to be hoarded as concerns about future supply increase.

· Overnight news about China was a bit scary with the 5% sell off. This was due to China’s growing inflation concerns. China’s inflation rate is primarily commodity driven with fuel and food prices rising. The only way they can head this off is to move up the value of the yuan which they are resisting doing.

· Question of whether to invest in “commodities” versus “commodity stocks” is continuing. Recently, Calsters (2nd biggest pension in the US) had made a large commitment to invest in commodities but then opened it up to open comments and due to all the pushback, decided to reverse its decision and cut back its commitment to commodities. Don says that may be they might look instead at the commodity companies and make an allocation to those as part of their overall equity trade. This could be a sign of the turning of the tide to a focus on the commodity equities themselves as evidenced by the fact that this pension fund chose to not move ahead with such a large investment into the commodities themselves.

· G20 comments – they couldn’t agree on anything except to meet again. This was a big disappointment to Don as it bodes ill for free trade. Commitment to international working together is falling apart.

· The other news out there was the collapse in the Cisco stock and its battering which came about when it indicated that it cut its original forecast of 13% growth to 3%! If a company like Cisco is cutting back on sales like this you really have to wonder about what’s going on in the economy. Cisco said where they got hit the hardest was in the government spending which could bode ill for many other companies who were counting on the government to buy their stuff.

· This shift in the US is going to move away from the Federal governments to the states. There will be some efforts at cutbacks in the states to try to deal with their budget deficits. Expect a lot of ugliness this year especially with potential cuts to pensions, etc.

· Weather forecasters are predicting a very cold winter …we shall see whether that may finally be a positive impact to the price of natural gas.